Downingtown Area budget includes 1.17 percent tax hike

EAST CALN — The newest preliminary budget for the 2013-14 school year of the Downingtown Area School District will include a 1.17 percent tax increase due to further savings suggested by school administration.

The latest proposal features a tax increase that is less severe than the previously recommended 1.54 percent, which was set during the board’s meeting in March. The school board previously approved a resolution not to exceed the Act 1 cap of a 1.7 percent tax increase this year.

According to Richard Fazio, business director for the school district, the 1.17 percent tax increase should be able to close the district’s budget gap after discovering further savings and revenues that the district can expect throughout the year.

Savings will include $75,000 due to taking advantage of locked-in fuel prices that are lower than what the district had anticipated.

“We also reduced our costs for special education,” Fazio said. The district’s special education program is structured around the number of students enrolled in the program. According to Fazio, there will be fewer children enrolled in the program next year, which has led to a decreased number of staff positions.

Fazio added that further savings include overall reductions in printing costs, anticipated higher revenue from growth within the district resulting in over $195 million in revenues, and recent retirement announcements from other district employees. According to Fazio, the administration will determine whether those open positions will be filled.

“The administration and the board will continue to look for further reductions over the next month,” Fazio said.

According to Fazio, the tax increase is primarily necessary due to an increase in the district’s contribution to the Public School Employees’ Retirement System that will be about $3.8 million this year. Fazio said the contribution is expected to increase to about $4 million next year.

Last year’s budget of $193,591,000 represented a 1.7 percent increase, the lowest property tax increase in over ten years, and was unanimously adopted by the board. The current millage for 2012-2013 is 27.182.

The school board will vote to accept or reject the preliminary budget during a meeting beginning at 7 tonight.

If the preliminary budget is accepted, there will be a 30-day public review period, and a final budget will be scheduled for adoption on June 12.